The ESIG Aligning Retail Pricing and Grid Needs Task Force examined ways that retail pricing may be used more widely and more efficiently to allow flexible demand to respond to grid needs as the role of demand becomes increasingly important for the reliability of the grid. The task force brought together experts in rate design and electricity markets, transmission and distribution planning and operations, consumer advocates, and others to explore current issues, potential solutions, and practical implementation challenges involved in utilizing the flexibility in price-sensitive loads.

White Paper Series

Seven papers were drafted by key members of the task force that highlighted important challenges and in some cases solutions to the potential misalignment that exists today between grid needs and retail pricing structures. The white papers along with an introduction paper are intended for readers across many facets of the energy industry, from power systems engineering and grid operators to retail economists, consumer advocates, and regulators across the world. The insights from the task force and its corresponding papers aims to advance understanding of the opportunities and challenges of using and enhancing retail pricing and programs to meet the changing grid needs of a changing energy paradigm.

“Aligning Retail Pricing and Grid Needs: Introduction to a White Paper Series” by Debra Lew, Erik Ela and Carl Linvill

“Treating Demand Equivalent to Supply in Wholesale Markets: An Opportunity for Customer, Market, and Social Benefits,” by Richard O’Neill, Debra Lew and Erik Ela

“Leveraging Locational and Temporal Flexibility in Transportation Electrification to Benefit Power Systems,” by Jennifer Chen

“Tapping the Mother Lode: Employing Price-Responsive Demand to Reduce the Investment Challenge,” by Michael Hogan

“Why Is the Smart Grid So Dumb?: Missing Incentives in Regulatory Policy for an Active Demand Side in the Electricity Sector,” by Travis Kavulla

“Rate Design for the Energy Transition: Getting the Most out of Flexible Loads on a Changing Grid,” by Arne Olson and Lindsay Bertrand

“Heat Pump–Friendly Cost-Based Rate Designs,” by Sanem Sergici, Akhilesh Ramakrishnan, Goksin Kavlak, Adam Bigelow, and Megan Diehl